For cargo delivery Amazon to lease 20 Boeing aircraft

Air Transport Services Group Inc announced on Wednesday that Amazon.com Inc will lease 20 Boeing 767 freighter aircraft, as the e-commerce gaint moves closer to setting up its own air delivery network.The online retailer has been testing deliveries by drones, but has not said when it expects to have them in service.

The deal with ATSG comes at a time when Amazon, which offers fast and increasingly free deliveries for millions of online orders, has been trying to make shipments even faster as well as assume more control over its business and costs.ATSG informed that the duration of the lease will be five to seven years.

As per the agreement, Amazon also has the right to buy up to 19.9 percent of ATSG's stock over five years at $9.73 per share. The price is at a 17.3 percent discount to ATSG's Tuesday closing price of $11.77.